GBP/USD Forecast: Surges On Strong UK PMI
The President of the United States doing what he can to pump up the stock markets by screaming for lower interest rates. While the PMI numbers do justify this move somewhat, President Trump does not have the authority to cut rates and Jerome Powell, at least Jerome Powell, thinks he can't be fired so I suspect we have a little bit of a showdown ahead.
At This Point, We Need to See Followthrough
(Click on image to enlarge)
Regardless, the move makes a certain amount of sense, but now we are in an area that I think is going to offer a real barrier, and it's going to be interesting to see if the British pound can continue higher. The 50-day EMA sits just above the 1.25 level, and then we have the 1.26 level above there, which has previously been important, so I think you have a band of resistance, if you will. It's really not until we get above there that I start to look at this pair a bit differently, but it is worth knowing that we did get extraordinarily oversold.
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